PLATTS ROCKIES OIL & GAS CONFERENCE - UINTA BASIN UPDATE STUART E. NANCE VP - MARKETING

Transcription

1 PLATTS ROCKIES OIL & GAS CONFERENCE - UINTA BASIN UPDATE STUART E. NANCE VP - MARKETING Denver, Colorado April 15, 2013

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4 What I will attempt to cover during this presentation From the Program Production, expansion, prospects Drilling programs/reports, lessons learned Local differential with WTI Logistics, infrastructure New markets beyond Utah Potential for gas pipelines to be converted to oil service New plays in Nevada What you d really like to know - Uinta Basin Wax Crude What is it? Where is it found? Who produces it? Where are markets? 4

5 Types of Wax Crude oil Produced from Uinta Basin, UT 5

6 UNITA BASIN WAX CRUDE UNIQUE PHYSICAL PROPERTIES Black Wax Crude o API gravity. +/- 100 o F Pour Point..01 mass % Sulfur content. Highly Paraffinic crude. Very Low Acid content (TAN <.1) Low metals & Nitrogen content. Carbon Residue very low. Yellow Wax Crude o API gravity. +/- 100 o F Pour Point..01 mass % Sulfur content. Highly Paraffinic crude. Very Low Acid content (TAN <.1) Very Low metals & Nitrogen content. Carbon Residue very low. Yellow and Black Wax Crude Excellent Feed for certain Lubes plants due to High Paraffin content. Possible Cracker Feed might be able to bypass Crude Unit in certain refineries. Excellent Anode Grade Coke Feedstock due to extremely low metals content (For refineries with cokers) Anodes are used in metals smelting. 6

7 UINTA BASIN Northeastern UT Uinta/Duchesne Co. Altamont Bluebell Monument Butte Central Basin 7

8 UNITA BASIN WAX CRUDE TOP OPERATORS Newfield Exploration (NYSE: NFX) Bill Barrett Corporation (NYSE: BBG) EP Energy Corporation - (Apollo Capital Management) Berry Petroleum (NYSE: BRY) to be acquired - Linn Energy Crescent Point Energy (TSX:CPG) acquired Ute Energy Estimated Gross Wax Production ~ 60,000+ b/d 8

9 Operators in Uinta Basin Duchesne/Uintah Counties, UT 9

10 Map of Producing Areas Uinta Basin, UT 10

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12 BENTEK CRUDE OIL PRODUCTION MONITOR UINTA BASIN 12

13 BENTEK CRUDE OIL PRODUCTION MONITOR UINTA BASIN 13

14 WAX CRUDE OIL POSTED PRICES SLC MARKETS Chevron Crude Oil Posted Prices Bulletin 13-E70 - Effective April 12, 2013 East of the Rockies Price Change Altamont Yellow Wax $75.79 (2.22) Uinta Basin Black Wax $74.79 (2.22) Big West Oil, LLC Posted Prices Bulletin Effective April 12, 2013 Utah Yellow Wax $74.79 Utah Brown Wax $74.04 Utah Black Wax $ NYMEX WTI settlement on April 12, $91.29 (down $2.22) SLC Wax Crude Postings are ~ 82% of WTI Futures on this date. 14

15 OIL PRICES FROM MORGAN STANLEY EVAN CALIO 15

16 REFINING CAPACITY - SALT LAKE CITY, UT. AREA Total SLC area refining capacity ~ 175,000 b/d Estimated Wax crude refining capacity ~ 65,000 b/d varies seasonally 16

17 PADD IV SCHEDULED TURNAROUNDS

18 SLC, UT AREA REFINERIES PRIMARY MARKET HOLLY FRONTIER Woods Cross, UT NYSE HFC, HEP Market Cap = $ 9.5 B / $2.3 B 10 yr supply agreement with NFX 20,000 b/d wax crude supplied 18

19 WAX CRUDE MARKETS SLC EXPANSIONS 19

20 SLC, UT AREA REFINERIES PRIMARY MARKET TESORO SLC, UT NYSE TSO, TLLP Market Cap = $ 7.1 B / $2.4 B Largest refiner in SLC, UT 18,000 B/d Contract with NFX 7 year term for wax supplies. 20

21 WAX CRUDE MARKETS SLC EXPANSIONS 21

22 SLC, UT AREA REFINERIES PRIMARY MARKET NYSE CVX CHEVRON SLC, UT Market Cap = $ 233 B BIG WEST REFINING SLC, UT Privately Owned CH. 11 reorg Market Cap = N/A Private Company 22

23 SLC, UT AREA REFINERIES PRIMARY MARKET SILVER EAGLE Woods Cross, UT Wholly-Owned Sub of IGI The International Group, Inc., - Toronto Market Cap = Private Company Total Capacity 15,000 BOPD Runs Yellow Wax exclusively UINTAH GATEWAY UPGRADER PROJECT 23

24 Uinta Oil Local (SLC) Markets Near Term Expansions Minor Expansion at Holly Frontier s Woods Cross Refinery 2,500 BOPD additional wax crude capacity completed in Nov, 2012 following turnaround in October, Holly Frontier Woods Cross Air Permit is pending in Utah for Major Expansion. Tesoro SLC expansion refinery in turnaround now back up end of April, Additional wax capacity being added in 2 phases (2Q13 and 2014). Chevron possible SLC expansion no details available - not quantified at present. Silver Eagle expansion completed in 1Q13. 24

25 Uinta Oil Play Markets Rail Loading Options Uinta Oil Play Utah Helper, UT Union Wellington, UT 25

26 WAX CRUDE MARKETS BEYOND SLC RAIL OPTIONS RAIL MARKETS Trans-loading Options currently under evaluation Focus on Logistics - Pour Point challenges and downstream handling required. Targets - W. Coast, Gulf Coast, East Coast Markets Coiled & Insultated rail cars required used fo Candian Bitumen, asphalt, VGO. Rail directly to Refinery w/ facilities to receive coiled rail cars = Optimal Solution. Rail to Other terminals, etc. = Most Likely Initial Solution. Other could = barges, trucks, heated pipelines. 26

27 SUMMIT MIDSTREAM, LLC UINTA HOT OIL PIPELINE 27

28 Questar Southern Trails Pipeline - Gas to Oil Conversion Presentation from Midwest Analyst Meetings April 9-11, 2013 Questar Southern Trails Pipeline - Extends from Blanco, NM to Cal border Southern Trails Pipeline is a 488-mile line extending from the Blanco hub in the San Juan Basin of northern New Mexico to delivery interconnects with California utilities. Southern Trails has a total daily transportation capacity of 80 MMcf and interconnects with several major pipelines serving the region. 28

29 Questar Southern Trails Pipeline Gas to Oil Conversion Presentation from Midwest Analyst Meetings April 9-11,

30 Kinder Morgan Freedom Pipeline Gas to Oil Conversion 30

31 EXPLORATION ACTIVITY NEVADA NOBLE ENERGY 31

32 APPENDIX ADDITIONAL COMPANY SPECIFIC INFO 32

33 Bill Barrett Corporation - Uinta Oil Program 2 Assuming $90 WTI and $4 HH 33

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35 Bill Barrett Corp 2012 Results for Uinta Oil Development 35

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37 Bill Barrett Corporation Typical Well Production Profile 37

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39 EP Energy Presentation Highlighting Altamont Results 39